National Corporation Allows an Employee, Phyllis, to Use a Company

question 7

Multiple Choice

National Corporation allows an employee, Phyllis, to use a company car for her vacation to San Diego.
I.The employer/employee relationship indicates that the receipt of the use of the car is a type of compensation for services rendered.
II.Income recognition is not necessary in this case.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Aggregate Demand

The sum of needs for all goods and services in an economy, measured at a collective price level within a set time interval.

Inflation

The velocity at which the universal price point for goods and services escalates, reducing the ability to make purchases.

Frictionally Unemployed

Individuals who are temporarily out of work while transitioning from one job to another.

Skills

The abilities and expertise that individuals acquire through training or experience that enhance their capacity to perform tasks effectively.